This document discusses challenges facing enterprise risk management (ERM) professionals. Interviews with ERM executives revealed common themes of feeling diminished relevance, questioning their significance to leadership, and dealing with uncertainty in their roles. When times are tough, organizations seek more validation of ERM's value. Relationships can become strained during debates over ERM ownership. The document calls for ERM professionals to reflect on stress management techniques and maintaining resilience amid these challenges.
2 accelerating high performance team effectivenessmikegggg
This document summarizes an executive report on leadership and business strategy from The Beacon Group, a Canadian professional services firm. The report discusses high performance team effectiveness and provides analysis on developing effective leadership teams. It identifies key factors such as strategic clarity, cultural alignment, credibility, commitment, and accountability. It also provides models for measuring team effectiveness and offers suggestions for improving team performance.
Banking industry Hot Topics - Forum in New OrleansGrant Thornton
Enterprise risk management (ERM) is a critical topic for banks given increased regulatory scrutiny and uncertainty in the market. The panel discussion at the ABA Risk Management Forum highlighted the value of ERM in improving decision making and preventing high-impact risks. While ERM is important, many organizations struggle with implementation due to issues like not embedding it in the culture or focusing too broadly. The discussion provided practical tips for understanding key ERM concepts and implementing it through a step-by-step process.
This document discusses the changing role of corporate boards and how this impacts chief human resource officers (CHROs). Some key points:
1. Corporate boards have evolved from ritualistic appendages to playing a more active leadership role in areas traditionally managed. This creates opportunities for CHROs but many have yet to become strategic advisors to boards.
2. A survey found that less than a third of directors view their CHRO as having significant influence, and nearly a quarter see the CHRO as having little influence.
3. To succeed, CHROs must position talent as integral to strategy and risk oversight. They should act as advocates rather than bureaucrats and establish themselves as trusted advisors to boards.
The Chief Risk Officer (CRO) role has evolved from initially focusing on risk control to taking a broader enterprise risk management approach. To be effective, the CRO must balance the roles of police officer, teacher, counselor, and business leader. There is no single model for how the CRO should be structured in an organization, but typically they report either to the CEO or CFO. Appointing an effective CRO is important for companies to make better risk and investment decisions.
A CEO is ultimately responsible for the growth of a company as evidenced by its financial performance, its capacity for self-renewal, and its character. The only way you can measure character is by reputation.
am_boards_in_challenging_times_researchDamon Young
This document presents a framework for how boards can successfully navigate extraordinary disruptions. It identifies four types of disruptions and discusses the key findings from research with over 70 board members. The report is structured around a three stage framework: 1) recognize the disruption, 2) establish leadership and strategic direction, and 3) apply the right disciplines. Case studies are used to illustrate each type of disruption: transformational, reputational, hostile, and creative. The framework aims to provide boards with practical guidance on dealing with major challenges outside of normal operations.
The document discusses reputation risk for financial institutions. It provides definitions of reputation and compares it to concepts like image and brand. Reputation is described as being based on a company's past actions and how trustworthy stakeholders perceive the company to be. The value of reputation comes from factors like financial performance, customer service, and governance. Maintaining a good reputation provides benefits like encouraging sales, attracting employees and investors, and gaining favor with regulators. The document notes that reputation risk is the number one concern for chief risk officers.
I'm very passionate about off-shore leadership. In this paper I have written down some of my experiences and reflections about off-shore leaders conditions in a harsh environment. Hope you enjoy the reading.
2 accelerating high performance team effectivenessmikegggg
This document summarizes an executive report on leadership and business strategy from The Beacon Group, a Canadian professional services firm. The report discusses high performance team effectiveness and provides analysis on developing effective leadership teams. It identifies key factors such as strategic clarity, cultural alignment, credibility, commitment, and accountability. It also provides models for measuring team effectiveness and offers suggestions for improving team performance.
Banking industry Hot Topics - Forum in New OrleansGrant Thornton
Enterprise risk management (ERM) is a critical topic for banks given increased regulatory scrutiny and uncertainty in the market. The panel discussion at the ABA Risk Management Forum highlighted the value of ERM in improving decision making and preventing high-impact risks. While ERM is important, many organizations struggle with implementation due to issues like not embedding it in the culture or focusing too broadly. The discussion provided practical tips for understanding key ERM concepts and implementing it through a step-by-step process.
This document discusses the changing role of corporate boards and how this impacts chief human resource officers (CHROs). Some key points:
1. Corporate boards have evolved from ritualistic appendages to playing a more active leadership role in areas traditionally managed. This creates opportunities for CHROs but many have yet to become strategic advisors to boards.
2. A survey found that less than a third of directors view their CHRO as having significant influence, and nearly a quarter see the CHRO as having little influence.
3. To succeed, CHROs must position talent as integral to strategy and risk oversight. They should act as advocates rather than bureaucrats and establish themselves as trusted advisors to boards.
The Chief Risk Officer (CRO) role has evolved from initially focusing on risk control to taking a broader enterprise risk management approach. To be effective, the CRO must balance the roles of police officer, teacher, counselor, and business leader. There is no single model for how the CRO should be structured in an organization, but typically they report either to the CEO or CFO. Appointing an effective CRO is important for companies to make better risk and investment decisions.
A CEO is ultimately responsible for the growth of a company as evidenced by its financial performance, its capacity for self-renewal, and its character. The only way you can measure character is by reputation.
am_boards_in_challenging_times_researchDamon Young
This document presents a framework for how boards can successfully navigate extraordinary disruptions. It identifies four types of disruptions and discusses the key findings from research with over 70 board members. The report is structured around a three stage framework: 1) recognize the disruption, 2) establish leadership and strategic direction, and 3) apply the right disciplines. Case studies are used to illustrate each type of disruption: transformational, reputational, hostile, and creative. The framework aims to provide boards with practical guidance on dealing with major challenges outside of normal operations.
The document discusses reputation risk for financial institutions. It provides definitions of reputation and compares it to concepts like image and brand. Reputation is described as being based on a company's past actions and how trustworthy stakeholders perceive the company to be. The value of reputation comes from factors like financial performance, customer service, and governance. Maintaining a good reputation provides benefits like encouraging sales, attracting employees and investors, and gaining favor with regulators. The document notes that reputation risk is the number one concern for chief risk officers.
I'm very passionate about off-shore leadership. In this paper I have written down some of my experiences and reflections about off-shore leaders conditions in a harsh environment. Hope you enjoy the reading.
The document discusses the issue of whether boards of financial institutions should have more directors with industry experience. It notes some potential advantages such as understanding business drivers, risks, and the competitive landscape. However, it also discusses downsides such as the risk of "groupthink" and the difficulty of recruiting current industry executives. It concludes that while industry experience can be valuable, it was likely not a lack of it that caused governance failures during the financial crisis. Sound judgment, common sense, and independence will remain most important for effective boards going forward.
This document summarizes key topics from the September/October 2009 issue of Management Focus, an expert magazine on management knowledge for leaders. The main articles discuss:
1) Leadership behaviors critical for coping during an economic crisis, including taking prompt action, honest communication, emotional connection, and inspiration.
2) An interview with business adviser Ram Charan about his book on leadership during economic uncertainty and the importance of "hands on, head in" leadership.
3) How collaboration within an organization can be a competitive necessity.
The document summarizes the findings of a 2014 global survey on reputation risk conducted by Deloitte and Forbes Insights. Some key findings include:
- 87% of over 300 executives surveyed rated reputation risk as more important than other strategic risks facing their companies.
- Responsibility for managing reputation risk resides primarily with senior leadership, including the CEO, CRO, board of directors, and CFO.
- The top drivers of reputation risk are ethics/integrity issues, security risks, and product/service risks related to safety, health and the environment.
- Companies are investing more in tools and capabilities to improve their management of reputation risk.
VaLUENTiS Nicholas J Higgins 12 Key Differentiators of Leader-Managers 02-2014njhceo01
This document discusses the key traits that differentiate good "Leader-Managers" from average ones. It identifies 12 traits of good Leader-Managers, including having high self-awareness, treating employees as organizational assets, being proactive, having people management knowledge, prioritizing clear communication, and viewing their management role as a privilege rather than a right. Average managers are more likely to have limitations in these areas, such as treating employees as their own resource and being reactive rather than proactive. The document emphasizes that ensuring all Leader-Managers exhibit these traits is important for optimizing employee engagement.
This document discusses Korn Ferry's framework for assessing leadership performance based on four dimensions: competencies, experiences, traits, and drivers. It provides definitions and examples for each dimension. The document then analyzes the respondent's results for each dimension, comparing their scores to research on skills and preferences correlated with leadership success. Their strengths are highlighted in competencies like ensures accountability and aligns execution. Areas for development are also noted.
This document provides an overview of strategic alignment between business and talent strategies. It discusses how the modern business environment presents unique challenges related to globalization, technology, demographics, and more. To compete in this complex environment, companies need sound business strategies as well as talent strategies to execute those business strategies. The document argues that people are one of the most important ways for a company to unlock its strategy, so managing talent is critical to achieving business goals. It emphasizes that close alignment between business and talent strategies helps ensure realization of the business strategy and operations excellence required for success. The rest of the document outlines key questions and considerations for aligning business and talent strategies.
This document discusses the concept of risk culture and how it has become an important factor in organizational failures and crises. It provides definitions of risk culture and examines how risk culture relates to and overlaps with organizational culture. It also discusses how risk culture can be measured and managed, using both qualitative and quantitative methods. Financial services is given as an example industry where weaknesses in risk culture have been identified as contributing to problems. The document advocates for organizations to carefully consider how rewards and incentives may influence or shape risk culture.
A brief and clear argumentation in favour of the personalisation approach in risk management procedures in large companies.
Taken from "Making better risk management decisions" by J. Birkinshaw and H. Jenkins.
1) The document discusses the importance of boards having independent directors with relevant industry expertise. It argues that boards comprised solely of independent directors without industry knowledge risk being "management knowledge-captured" and unknowingly deferring to the CEO.
2) Recent studies, shareholder activism campaigns, and litigation suggest that independent directors with industry experience improve board oversight, performance, and decision-making.
3) The document advocates that all boards should evaluate whether they have sufficient independent directors with industry expertise to avoid over-relying on management and effectively challenge them when needed.
Reputational risk management involves identifying and mitigating risks that could damage an organization's reputation. It is important because reputation is an intangible asset that can impact value growth, market opportunities, and competitive advantage. Reputational risks stem from actions that reduce stakeholder trust and can include regulatory issues, fraud, management changes, or negative publicity. Effective reputational risk management identifies key risks, assesses their potential impact, and ensures timely responses to issues in order to promote trust between an organization and its stakeholders.
Maximising restructuring outcomes with syndicates of financiers - Australian ...Michael Fung
The document discusses key factors for successful restructurings of companies financed by syndicates. It identifies establishing credibility and trust with financiers, effective communication, and obtaining the right advice early as critical. Management must understand syndicate members may have differing goals and adjust expectations accordingly. Choosing advisors familiar with syndicate mindsets can help build trust. Overall, recognizing syndicate complexity and priorities for short-term issues while presenting a credible long-term plan increases chances of a successful restructuring outcome.
Discussion of reputation risk and how to incorporation reputation management into a business in order to build resiliency and growth. Presented at the 3rd International Reputation Management Conference in Istanbul, Turkey, in November 2014
This document summarizes an article from the March 2016 issue of Credit Union Business magazine. The article discusses the concept of member portfolio management, which involves segmenting a credit union's members into meaningful groups in order to better understand their needs and develop targeted strategies. It provides examples of credit unions that have broken their members into groups based on financial health or life events. The article argues this strategic approach results in increased profitability compared to typical analytics efforts focused on sales metrics. It also notes how member portfolio management changes conversations in the boardroom to focus more on members.
Risk management for law firms chapter 1 ark 2009 by dave cunninghamDavid Cunningham
This document provides an overview of effective risk management for law firms. It discusses that risk management involves balancing risks and opportunities to positively impact a firm's competitive standing. While risk responsibilities were traditionally fragmented, firms are increasingly taking an enterprise-wide view of risk management led by roles like the general counsel. The document outlines key types of risks facing law firms and how risk roles and responsibilities are evolving to take a more proactive, holistic approach to identifying, assessing, and monitoring risks across a firm. It provides guidance on implementing an effective risk management process including communication, context-setting, assessment, treatment, and ongoing monitoring.
Leadership Development: Should Your Firm Invest in Growing Its Leaders?kcbradley
This document discusses whether law firms should invest in developing leadership skills among their lawyers. It argues that while law firms have traditionally been reluctant to do so, there are now good reasons for firms to invest in leadership development. Specifically:
1) Recent high-profile law firm failures were at least partly due to poor leadership, demonstrating the importance of strong leadership for law firm success and survival.
2) Research shows that leadership development positively impacts employee performance, client acquisition and retention, profitability, and shareholder value in corporations. While law firms are different structures, their internal practices have become more hierarchical.
3) Critical leadership skills for law firm success include inspiring confidence, collaborating with employees, valuing learning,
While references to risk culture are relatively new, weaknesses in risk awareness and management have been identified as contributing factors in major world events like the global financial crisis. Firms have launched reviews of areas like product complexity and incentive schemes to address these weaknesses, but more work remains to be done. Embedding a consistent risk culture throughout a company's business units can be challenging. Measuring risk culture is important for managing it effectively, and there are well-developed approaches for doing so, such as interviews, focus groups, and surveys.
This document discusses research on CEO reputation and its importance. Some key findings include:
- Executives estimate that nearly half (45%) of their company's reputation and 44% of its market value is attributable to their CEO's reputation.
- Strong CEO reputation provides benefits like attracting investors, positive media attention, and protecting the company during crises. It also helps attract and retain employees.
- To have a strong reputation, CEOs need clear vision, inspire others, be ethical, communicate well internally and externally, and ensure the company is a good place to work.
- A company's senior management team and industry can also significantly influence its reputation, not just the CEO alone. Maintaining
This document discusses managing reputational risk. It defines reputation and reputational risk management. Reputational risk management identifies risks that can damage an organization's reputation, assesses their potential impact, and ensures timely responses to public criticism. It benefits organizations by promoting good culture and commitment between stakeholders. Reputational risk can be rated as low, moderate, or high based on indicators like how well management responds to changes and regulates risks, and the significance of any losses from fiduciary activities.
Executive Summary on Leadership in Risk Management WebinarFERMA
This document summarizes a webinar on leading risk culture change. The webinar discusses how enterprise risk management (ERM) requires buy-in from senior leadership to change company culture and attitudes around risk. For ERM to be effective, the entire C-suite must endorse risk awareness and accountability at all levels of the organization. Senior leaders also need to gain an understanding of individual and organizational attitudes towards risk in order to build consensus around risk management strategy. Leading companies view ERM not just as a compliance issue but as a strategic tool to improve decision making and drive profitability.
In 3 sentences:
The document provides guidance on developing an effective risk culture and governance structure. It emphasizes the importance of leadership setting the right tone, transparently discussing risks across all levels of the organization, and establishing clear roles and responsibilities for risk management. Developing a positive risk culture involves openly sharing information, encouraging feedback, and ensuring risks are considered in day-to-day operations and strategic decisions.
The document discusses the issue of whether boards of financial institutions should have more directors with industry experience. It notes some potential advantages such as understanding business drivers, risks, and the competitive landscape. However, it also discusses downsides such as the risk of "groupthink" and the difficulty of recruiting current industry executives. It concludes that while industry experience can be valuable, it was likely not a lack of it that caused governance failures during the financial crisis. Sound judgment, common sense, and independence will remain most important for effective boards going forward.
This document summarizes key topics from the September/October 2009 issue of Management Focus, an expert magazine on management knowledge for leaders. The main articles discuss:
1) Leadership behaviors critical for coping during an economic crisis, including taking prompt action, honest communication, emotional connection, and inspiration.
2) An interview with business adviser Ram Charan about his book on leadership during economic uncertainty and the importance of "hands on, head in" leadership.
3) How collaboration within an organization can be a competitive necessity.
The document summarizes the findings of a 2014 global survey on reputation risk conducted by Deloitte and Forbes Insights. Some key findings include:
- 87% of over 300 executives surveyed rated reputation risk as more important than other strategic risks facing their companies.
- Responsibility for managing reputation risk resides primarily with senior leadership, including the CEO, CRO, board of directors, and CFO.
- The top drivers of reputation risk are ethics/integrity issues, security risks, and product/service risks related to safety, health and the environment.
- Companies are investing more in tools and capabilities to improve their management of reputation risk.
VaLUENTiS Nicholas J Higgins 12 Key Differentiators of Leader-Managers 02-2014njhceo01
This document discusses the key traits that differentiate good "Leader-Managers" from average ones. It identifies 12 traits of good Leader-Managers, including having high self-awareness, treating employees as organizational assets, being proactive, having people management knowledge, prioritizing clear communication, and viewing their management role as a privilege rather than a right. Average managers are more likely to have limitations in these areas, such as treating employees as their own resource and being reactive rather than proactive. The document emphasizes that ensuring all Leader-Managers exhibit these traits is important for optimizing employee engagement.
This document discusses Korn Ferry's framework for assessing leadership performance based on four dimensions: competencies, experiences, traits, and drivers. It provides definitions and examples for each dimension. The document then analyzes the respondent's results for each dimension, comparing their scores to research on skills and preferences correlated with leadership success. Their strengths are highlighted in competencies like ensures accountability and aligns execution. Areas for development are also noted.
This document provides an overview of strategic alignment between business and talent strategies. It discusses how the modern business environment presents unique challenges related to globalization, technology, demographics, and more. To compete in this complex environment, companies need sound business strategies as well as talent strategies to execute those business strategies. The document argues that people are one of the most important ways for a company to unlock its strategy, so managing talent is critical to achieving business goals. It emphasizes that close alignment between business and talent strategies helps ensure realization of the business strategy and operations excellence required for success. The rest of the document outlines key questions and considerations for aligning business and talent strategies.
This document discusses the concept of risk culture and how it has become an important factor in organizational failures and crises. It provides definitions of risk culture and examines how risk culture relates to and overlaps with organizational culture. It also discusses how risk culture can be measured and managed, using both qualitative and quantitative methods. Financial services is given as an example industry where weaknesses in risk culture have been identified as contributing to problems. The document advocates for organizations to carefully consider how rewards and incentives may influence or shape risk culture.
A brief and clear argumentation in favour of the personalisation approach in risk management procedures in large companies.
Taken from "Making better risk management decisions" by J. Birkinshaw and H. Jenkins.
1) The document discusses the importance of boards having independent directors with relevant industry expertise. It argues that boards comprised solely of independent directors without industry knowledge risk being "management knowledge-captured" and unknowingly deferring to the CEO.
2) Recent studies, shareholder activism campaigns, and litigation suggest that independent directors with industry experience improve board oversight, performance, and decision-making.
3) The document advocates that all boards should evaluate whether they have sufficient independent directors with industry expertise to avoid over-relying on management and effectively challenge them when needed.
Reputational risk management involves identifying and mitigating risks that could damage an organization's reputation. It is important because reputation is an intangible asset that can impact value growth, market opportunities, and competitive advantage. Reputational risks stem from actions that reduce stakeholder trust and can include regulatory issues, fraud, management changes, or negative publicity. Effective reputational risk management identifies key risks, assesses their potential impact, and ensures timely responses to issues in order to promote trust between an organization and its stakeholders.
Maximising restructuring outcomes with syndicates of financiers - Australian ...Michael Fung
The document discusses key factors for successful restructurings of companies financed by syndicates. It identifies establishing credibility and trust with financiers, effective communication, and obtaining the right advice early as critical. Management must understand syndicate members may have differing goals and adjust expectations accordingly. Choosing advisors familiar with syndicate mindsets can help build trust. Overall, recognizing syndicate complexity and priorities for short-term issues while presenting a credible long-term plan increases chances of a successful restructuring outcome.
Discussion of reputation risk and how to incorporation reputation management into a business in order to build resiliency and growth. Presented at the 3rd International Reputation Management Conference in Istanbul, Turkey, in November 2014
This document summarizes an article from the March 2016 issue of Credit Union Business magazine. The article discusses the concept of member portfolio management, which involves segmenting a credit union's members into meaningful groups in order to better understand their needs and develop targeted strategies. It provides examples of credit unions that have broken their members into groups based on financial health or life events. The article argues this strategic approach results in increased profitability compared to typical analytics efforts focused on sales metrics. It also notes how member portfolio management changes conversations in the boardroom to focus more on members.
Risk management for law firms chapter 1 ark 2009 by dave cunninghamDavid Cunningham
This document provides an overview of effective risk management for law firms. It discusses that risk management involves balancing risks and opportunities to positively impact a firm's competitive standing. While risk responsibilities were traditionally fragmented, firms are increasingly taking an enterprise-wide view of risk management led by roles like the general counsel. The document outlines key types of risks facing law firms and how risk roles and responsibilities are evolving to take a more proactive, holistic approach to identifying, assessing, and monitoring risks across a firm. It provides guidance on implementing an effective risk management process including communication, context-setting, assessment, treatment, and ongoing monitoring.
Leadership Development: Should Your Firm Invest in Growing Its Leaders?kcbradley
This document discusses whether law firms should invest in developing leadership skills among their lawyers. It argues that while law firms have traditionally been reluctant to do so, there are now good reasons for firms to invest in leadership development. Specifically:
1) Recent high-profile law firm failures were at least partly due to poor leadership, demonstrating the importance of strong leadership for law firm success and survival.
2) Research shows that leadership development positively impacts employee performance, client acquisition and retention, profitability, and shareholder value in corporations. While law firms are different structures, their internal practices have become more hierarchical.
3) Critical leadership skills for law firm success include inspiring confidence, collaborating with employees, valuing learning,
While references to risk culture are relatively new, weaknesses in risk awareness and management have been identified as contributing factors in major world events like the global financial crisis. Firms have launched reviews of areas like product complexity and incentive schemes to address these weaknesses, but more work remains to be done. Embedding a consistent risk culture throughout a company's business units can be challenging. Measuring risk culture is important for managing it effectively, and there are well-developed approaches for doing so, such as interviews, focus groups, and surveys.
This document discusses research on CEO reputation and its importance. Some key findings include:
- Executives estimate that nearly half (45%) of their company's reputation and 44% of its market value is attributable to their CEO's reputation.
- Strong CEO reputation provides benefits like attracting investors, positive media attention, and protecting the company during crises. It also helps attract and retain employees.
- To have a strong reputation, CEOs need clear vision, inspire others, be ethical, communicate well internally and externally, and ensure the company is a good place to work.
- A company's senior management team and industry can also significantly influence its reputation, not just the CEO alone. Maintaining
This document discusses managing reputational risk. It defines reputation and reputational risk management. Reputational risk management identifies risks that can damage an organization's reputation, assesses their potential impact, and ensures timely responses to public criticism. It benefits organizations by promoting good culture and commitment between stakeholders. Reputational risk can be rated as low, moderate, or high based on indicators like how well management responds to changes and regulates risks, and the significance of any losses from fiduciary activities.
Executive Summary on Leadership in Risk Management WebinarFERMA
This document summarizes a webinar on leading risk culture change. The webinar discusses how enterprise risk management (ERM) requires buy-in from senior leadership to change company culture and attitudes around risk. For ERM to be effective, the entire C-suite must endorse risk awareness and accountability at all levels of the organization. Senior leaders also need to gain an understanding of individual and organizational attitudes towards risk in order to build consensus around risk management strategy. Leading companies view ERM not just as a compliance issue but as a strategic tool to improve decision making and drive profitability.
In 3 sentences:
The document provides guidance on developing an effective risk culture and governance structure. It emphasizes the importance of leadership setting the right tone, transparently discussing risks across all levels of the organization, and establishing clear roles and responsibilities for risk management. Developing a positive risk culture involves openly sharing information, encouraging feedback, and ensuring risks are considered in day-to-day operations and strategic decisions.
Paradigm Paralysis in ERM & IA EB7_p48-51 Tim Leech v2Tim Leech
The document discusses the need for a paradigm shift in enterprise risk management (ERM) and internal audit approaches from a risk-centric model to an objective-centric model. It argues the current risk-centric models that rely on risk registers are flawed because they look at risks in isolation rather than linking them to organizational objectives. It proposes boards require management to regularly report on residual risk status linked to key value creation and preservation objectives. This would position management as primarily responsible for risk assessment rather than traditional ERM and internal audit groups. It acknowledges there are significant barriers to change, including guidance materials, skills gaps, and reluctance to change entrenched practices.
STRATEGIC PLANNINGManaging Risks A NewFrameworkby Rob.docxsusanschei
STRATEGIC PLANNING
Managing Risks: A New
Framework
by Robert S. Kaplan and Anette Mikes
FROM THE JUNE 2012 ISSUE
W
Editors’ Note: Since this issue of HBR went to press, JP Morgan, whose risk management practices are
highlighted in this article, revealed significant trading losses at one of its units. The authors provide
their commentary on this turn of events in their contribution to HBR’s Insight Center on Managing
Risky Behavior.
hen Tony Hayward became CEO of BP, in 2007, he vowed to make safety his top
priority. Among the new rules he instituted were the requirements that all
employees use lids on coffee cups while walking and refrain from texting while
driving. Three years later, on Hayward’s watch, the Deepwater Horizon oil rig exploded in the Gulf
of Mexico, causing one of the worst man-made disasters in history. A U.S. investigation commission
attributed the disaster to management failures that crippled “the ability of individuals involved to
identify the risks they faced and to properly evaluate, communicate, and address them.” Hayward’s
story reflects a common problem. Despite all the rhetoric and money invested in it, risk
management is too often treated as a compliance issue that can be solved by drawing up lots of rules
and making sure that all employees follow them. Many such rules, of course, are sensible and do
reduce some risks that could severely damage a company. But rules-based risk management will not
diminish either the likelihood or the impact of a disaster such as Deepwater Horizon, just as it did
not prevent the failure of many financial institutions during the 2007–2008 credit crisis.
Identifying and Managing
Preventable Risks
In this article, we present a new categorization of risk that allows executives to tell which risks can
be managed through a rules-based model and which require alternative approaches. We examine
the individual and organizational challenges inherent in generating open, constructive discussions
about managing the risks related to strategic choices and argue that companies need to anchor these
discussions in their strategy formulation and implementation processes. We conclude by looking at
how organizations can identify and prepare for nonpreventable risks that arise externally to their
strategy and operations.
Managing Risk: Rules or Dialogue?
The first step in creating an effective risk-management system is to understand the qualitative
distinctions among the types of risks that organizations face. Our field research shows that risks fall
into one of three categories. Risk events from any category can be fatal to a company’s strategy and
even to its survival.
Category I: Preventable risks.
These are internal risks, arising from within the organization, that are controllable and ought to be
eliminated or avoided. Examples are the risks from employees’ and managers’ unauthorized, illegal,
unethical, incorrect, or inappropriate actions and the risks from br.
The new guidance is based on IRM’s professional standards and is aimed at organisations of all types seeking to recruit a Chief Risk Officer (CRO), perhaps their first, or to make other senior risk appointments.
I need response to Discussion post in 200 words.docxwrite4
This document discusses efficient frontier analysis and strategic risk management. It provides context for how efficient frontier analysis can help organizations identify projects that determine appropriate risks and investments. Strategic risk management allows organizations to better understand risk across divisions to inform decision making. Quantitative financial and behavioral models are increasingly used to analyze risk portfolios. Strategic risk management creates opportunities for interaction across an organization to holistically assess risk.
I need response to Discussion post in 200 words.docxsdfghj21
This document discusses efficient frontier analysis and strategic risk management. It provides context for how efficient frontier analysis can help organizations identify projects that determine appropriate risks and investments. Strategic risk management allows organizations to better understand risk across divisions to inform decision making. Quantitative financial and behavioral models are increasingly used to analyze risk portfolios. Strategic risk management creates opportunities for interaction across an organization to holistically assess risk.
Thoughts on Direction of Ops Risk Management -V4 0Amrut Joshi
The document discusses risk management and operational risk. It provides context on the tumultuous global economic environment of the last decade which brought focus to risk management. However, some question if current risk management practices are adequate given failures still occurred. The document then discusses various studies on risk management and findings that risks are about human decisions. Therefore, influencing business decisions is important to manage risks and avoid failures. It introduces the concept of "behavioural risk management" and capturing the experience of being embedded within business to influence decisions from the first line of defence.
Successfully Navigating the Turning Tides
Welcome to the 13th edition of Creating Value, IMAP’s flagship mid-market M&A publication.
To say this year has been a mixed bag of nuts so far is somewhat of an understatement. Following a record year of M&A in 2021, many expected that this momentum would continue long into 2022. However, record high inflation, rising interest rates, and fears of a recession continue to overshadow market activity.
With energy and food price increases a danger to the stability of developing markets, global stock market valuations are off 20-30% from their cycle highs and are showing no signs of an imminent recovery. Yet despite this difficult environment, IMAP advisors continue to close successful deals for clients around the world and in this edition of Creating Value, we share the story behind some of these, including an artificial heart manufacturer looking to become the primary alternative to heart transplants and an IT recruitment company looking to bridge the gap in technology skills as a result of digitization. We also put Industrials, Fintech and Automotive under the microscope to find out what’s driving M&A activity and identifying opportunities for investors.
As we continue our series dedicated to the subject of ESG, we take a look at the implications of new ESG reporting regulations on mid-market companies. We also share details of a recent client succession story in the Renewable Energy sector.
Following his recently published paper looking at the likelihood of single-owner SMEs credit defaulting compared to multiple-owner SMEs, Dr. Csaba Burger, Data Science Advisor at the Hungarian National Bank (MNB), talks to Creating Value to explain why SMEs are twice as likely to default and provides guidance on key measures to mitigate the risks.
As IMAP continues to expand its global footprint, we take the opportunity to once again welcome our newest IMAP member, Investor in Paraguay and examine what is increasingly becoming a highly attractive region for investors. We also share news of a new IMAP partner agreement designed to develop our investment banking activities in the Netherlands.
So, while we are unable to predict what will happen in the markets over the coming months, or say for certain how things are going to unfold, it is clear that the tides are turning and by the time we come back to you with our next edition there will be much to talk about. In the meantime, our IMAP partners around the globe will continue to dig deep and be ready to help our clients successfully navigate any treacherous waters.
This document discusses establishing the context for an organizational risk management program. It recommends defining objectives, metrics, and how the program supports business goals. Risk managers are under increased pressure to formalize processes given new scrutiny from boards and executives. The document also stresses the importance of understanding an organization's internal and external contexts to ensure risk management programs fit their environments and add value.
Headline-grabbing scandals can cause massive damage: a deposed CEO, a replaced communications head or billions of euros lost. But how to anticipate reputational risks – or even avoid them – before a crisis hits?
Article written by Phil Riggins, a partner in Brunswick’s London office, for Communication Director magazine Issue 04/2015
http://www.communication-director.com/issues/hidden-powers/seeing-dark#.Vm_zvEqLSUk
People in health and safety roles are increasingly expected to act like leaders, whatever their level. But what does this really mean? KIRSTIN FERGUSON suggests some approaches.
The document discusses whether reputational risk should be considered its own category of risk or a consequence of other risks. It explores different perspectives on this issue from risk professionals and academics. While some see reputational risk as a standalone category, others believe it is always a result of failures in managing other primary risks like legal, compliance, or environmental risks. The document also outlines best practices for managing reputational risk, including integrating it within an organization's overall risk management framework and ensuring responsibilities are shared across the organization.
Since the onset of the global financial crisis in 2008, businesses around the world have faced a barrage of new risk-related challenges.
The macroeconomic environment of recent years, marked by the global financial crisis, fiscal uncertainty in the US and sovereign debt problems in Europe, has also helped to make companies more riskaverse, leading them to swap bold investment decisions for more cautious behaviour and cash hoarding. The tide is turning, however, with most expecting 2014 to mark a return to growth...
1. The document provides guidance for boards on understanding and improving an organization's risk culture.
2. It defines risk culture as the values, beliefs, knowledge, and understanding about risk that are shared by a group within an organization.
3. A good risk culture enables informed risk-taking, rewards appropriate risk behaviors, and encourages transparency around risk information and reporting.
This document discusses corporate social responsibility (CSR). It defines CSR as a holistic approach that considers a firm's impact on and relationship with all stakeholders, not just shareholders. It argues that CSR is important for long-term business sustainability. To properly manage CSR, leaders should authentically pursue CSR through inspirational leadership focused on stakeholder values rather than narrow economic or rational decision-making. Leaders must help followers see how CSR connects to business goals and broader societal issues to build commitment to CSR strategies.
ERM Implementation ERM is essential for organizations.docxelbanglis
ERM Implementation
ERM is essential for organizations in managing risks and improve on opportunities related to the achievement of organizational objectives. Statoil and United Grain Growers have established an enterprise risks management that meets their company goals based on the challenges each of them is facing.
The primary difference between ERM in Statoil and United Grain Growers is that ERM will affect management at the latter. Additionally, ERM at United Grain Growers seeks to retrieve the company from financial constraints while at Statoil, ERM seeks to improve organizational performance. However, ERM at the two companies share some similarities. For instance, ERM at United Grain Growers seeks to identify and access principle risks. The same applies to Statoil which seeks to identify any potential risks during the exercise. Besides, the two companies have a strategic risk plan. A strategic plan is essential as it outlines the role of a manager, CEO and everyone involved in the steps of an ERM (Robert and Liebenberg, 2011). United Grain growers has a strategic plan to improve financial dividends while Statoil has a risk map and committee with outlined roles and responsibilities.
The Statoil ERM seems workable and productive meaning I can implement it is it were up to me. On the contrary, I will not implement the United Grain Growers ERM. In my opinion, the ERM lacks the potential to solve financial constraints that the company is experiencing. However, some parts of it are productive, but a merger comes in with other risks for the struggling company. For instance, a merger will lead to employee layoff which might put the company at a risk of losing some important skills (Chui, 2011). Additionally, the company assets might be miscalculated during financial evaluation leading to more losses.
Generally, the ERM at Statoil might be successful in future because it is based on company goals and values. On the contrary, UGG ERM might not succeed because there are many risks associated with its strategy for implementation.
References
Chui, B.S. 2011. A Risk Management Model for Merger and Acquisition.
Robert, E.H. and Liebenberg, A.P. (2011). The Value of Enterprise Risk Management. The
Journal of Risk and Insurance, 78(4).pp. 795-822.
https://doi.org/10.1111/j.15396975.2011.01413.x
According to Brustbauer, 2016 Enterprise risk management help the company prepare for the uncertainties and disasters that may occur all along. Every business must identify the threats likely to face the business and come up with a contingency plan. Different companies faces different threats and uncertainties and therefore while coming up with the risk management plan one must consider the uniqueness of the enterprise and the likely threats to occur. These differences make the companies and business have different hierarchy of risks that are likely to occur. This paper is going to compare and contrast the enterprise risk management of the united g ...
This document discusses how enterprise risk management (ERM) can help security leaders transform their roles. It provides an overview of ERM, outlining the key phases and processes involved. The security leader's background and experience make them well-positioned to play an important role in ERM. One security leader used ERM to ensure his department remained aligned with the company's strategic goals and supported a new initiative to expand into emerging markets. ERM provides a framework to manage risks across an organization in a coordinated way and help security leaders demonstrate their value through a strategic, enterprise-wide approach.
The requirement for presentation(need in 4hrs)slide1ERM at M.docxkathleen23456789
The requirement for presentation:(need in 4hrs)
slide1:
ERM at Mars and UC
slide2:ERM in industry and academia
slide3:Measuring and Selecting an ERM Framework
slide 4:Special Rick Management Topic
slide 5 :conclusion
below is the content for doing a presentation
1. ERM at Mars and UC
Two different organizations can approach similar to the ERM due to some common benefit or some common purpose suppose we have following two organization the ERM at Mars incorporated and ERM in practice at the University of California Health The system both the approaches are used to spread and include the process in business units and other units. The developments in these growths of this program caused working with the professionals to address the business units.
Ways the two organization’s approaches to ERM differ
Two different organizations can approach in a different way to ERM because it has different purposes and different advantages which vary from field to field (WARNER, LARRY, 2015). Suppose we have following two different organizations that approach differently the ERM at Mars can be migrated to the non-family management i.e., it can apply to other areas/platforms different from professional organizations, while ERM at UC focuses on the enterprise risk analysis, audits, monitoring and report generation. ERM at Mars uses simple technology in framework building like word, excel and some tools. Whereas ERM at UC focuses on complex technologies for the building of the framework.
One aspect of each ERM implementation from which the other organization would benefit
For any organization implementing Enterprise Risk Management is a key, initially, an organization has to know about the fundamentals i.e. scope and tools that accommodate the ERM implementation plan. To implement ERM getting essentials right up to an organization explicit ERM system that unmistakably and quantifiably characterizes what ERM will mean for the organization and utilizing that structure to build up an ERM execution plan that is explicitly for accomplishment in the organization.
Enterprise Risk Management (ERM) mainly involves six fundamentals.
Identify
Analyze
Control
Transfer
Reduce
Assess
Most Organizations have faith in big business change administration like ERM. In many cases, many have been baffled by execution issues at this point, caused ERM to miss the mark regarding its potential. Before starting ERM they have to do solid back end work to implement.
What advantages can an organization acknowledge through ERM
Organizations that comprehend their dangers have a more noteworthy capacity to anticipate or respond to occasions that can affect objectives and targets. Eventually, this can convert into less unpredictability and an aggressive edge. A decent handle of hazard can likewise open up an organization's viewpoint on circumstances it might need to seek after.
ERM empowers the board and the board to have an increasingly steady perspective of a way .
0 Easy Steps To Implement Enterprise Risk ManagementNat Rice
This document outlines 10 easy steps to implement enterprise risk management (ERM). The steps include: 1) defining the value ERM provides to the organization; 2) researching ERM standards and frameworks; 3) inventorying existing risk management practices; 4) seeking support from executives and stakeholders; 5) keeping the ERM process simple; 6) starting small by focusing on a specific business area; 7) going for quick wins by prioritizing top risks; 8) delegating risk ownership to accountable managers; and 9) reporting on ERM progress. The overall goal is to build risk management capabilities throughout the organization to support strategic objectives.
Similar to 7992_RiskWatch_Special Edition_Spring 2016_4-FINAL (2) (20)
1. RISK WATCH
Thought
Leadership in Risk.
REVIEW SPRING 2016
Contents
Preface 1
For the ERM Professional: Dealing
With Uncertainty Means Mindfulness
and Resiliency 2
Special Edition
3. Risk Watch Spring 2016 The Conference Board of Canada 1
The following article delves into an
emerging and delicate area. It is not
typical reading for risk enthusiasts, who
usually share perspectives, insights, and
practices on building an enterprise-wide
risk management program. Our authors
touch on the realities, stressors, and
challenges in the ERM profession and
the uncertainty and relevancy the ERM
professional may feel or has experienced
as a result.
“Seek to understand, and then be
understood,” are not only wise words
used by Steven Covey in his The 7
Habits of Highly Effective People, they
are the approach we took to writing
about this topic. Our aim was not to
make conclusive statements but rather
to “… provoke some reflection so that
individual ERM professionals can
resolve their image and relationship
problems for themselves and, as
appropriate, in the context in which
they function.”1
1 Chandra Krishnamurthy, February 23, 2016, in
reviewing this article.
SPECIAL THANKS AND
ACKNOWLEDGEMENTS
Our gratitude goes to Chandra
Krishnamurthy, Director of Internal
Audit & ERM, Hydro Ottawa; Mike
Standbrook, Director, Treasury and Risk
Management, INTERFOR Corporation;
and Cathy Taylor, Vice-President of
Risk, Element Financial Corporation, for
their wisdom, time spent in reviewing
the drafts, and specific input and insight.
We also thank all our interviewees for
their time, honesty, and knowledge that
provided the foundation for this report
and compelled us to investigate options
for the well-being of all professionals.
Dr. Michael Bloom
Vice-President
Industry and Business Strategy
Foreword
4. The Conference Board of Canada2 Risk Watch Spring 2016
by Christine Maligec, Sam Miller, and Karen Thiessen
A SHIFT IN THE ERM
PROFESSION
Over the past two years, we believe a
shift in the ERM landscape has occurred
and, as a result, the ERM profession
is facing increased stress due to
organizational and individual challenges.
Much of this shift has arisen as some
organizations begin to question the
value that their investment in ERM
has generated. Given that so many
management teams agreed to implement
their ERM programs solely because
of regulatory obligations or board
pressure, it is not surprising that ERM
is seen as an unimportant management
tool. Interest and investment thus begin
to wane and ERM morphs into a risk
reporting exercise that leaves many
ERM professionals feeling diminished
in terms of their relevancy. Feelings
of uncertainty over their role, and as a
valued member of the executive team,
bubble to the surface.
Even if ERM is seen as a valuable
activity, and perhaps because of
that, some ERM professionals find
themselves caught in the subtle—and
not so subtle—ERM ownership “bun
fights” that are currently taking place
among various professional associations
and consulting firms. The ownership
debate has led to turf wars over which
department should house ERM or
which credentials are necessary to lead
an ERM program. Relationships with
colleagues can become strained, or even
adversarial, and conflicts can arise in
these instances. This occurs particularly
when there is a perceived threat to one’s
profession, position, experience, or
intellect.
In short, boards and executives require
more demonstrable proof that ERM
brings value to the organization. For the
ERM professional, this is a challenge.
How does one tangibly show that the
benefits or opportunities an organization
reaps are attributable to its ERM
program? Alternatively, put another
way, which organizational rewards,
especially for non-quantifiable risks, can
be directly associated to ERM? When
this is not illustrated satisfactorily to the
board and the executive team, pressure
builds up on the ERM professional.
As other internal and external factors
are thrown into the pot, the pressure
snowballs into more stress and
uncertainty. A cloud accumulates over
the ERM profession. This is when ERM
professionals need to reflect, recognize
they are human, and accept support in
and from various forms.
OUR THINKING AND
METHODOLOGY
While there is little debate on the
ongoing, and perhaps increasing, need
to manage risk given the challenges
that organizations face, very little is
ever discussed on the internal and
external factors affecting the ERM
profession. Nor are there in-depth
discussions within the risk community
on how to cope with all this uncertainty
and prepare for tough times ahead—
particularly when it is a hot button for
some ERM professionals while for
others it can be viewed simply as a risk
of being in the profession.
We set out to explore what some
of these predominant factors were
by first interviewing several ERM
executives from varying industries
and career experiences. Quite a few
common themes and insights arose
from these interviews. Many were fairly
obvious, some more subtle, and others
debatable—depending on the ERM
professional’s background and views.
It became evident, however, that we
needed to dig deeper. Why? On the
surface, it is comparatively easy to
acknowledge universal factors. But,
the emotional effect these have on
individual ERM professionals is more
For the ERM Professional: Dealing
With Uncertainty Means Mindfulness
and Resiliency
5. The Conference Board of Canada 3Risk Watch Spring 2016
or less kept hidden from colleagues and
not easily accepted. It is human nature
to not rock the boat when the waters are
already rough, especially when one is
feeling cornered, irrelevant, or unheard.
Second, we interviewed a trauma
therapist for signs and impacts of stress,
and on how ERM professionals could
best help themselves. The prevalence
of high rates of stress has dramatically
increased in recent times. As many
of us are aware, increased stress can
contribute to serious health issues
and higher health and employer costs.
As well, stress can affect employee
performance, retention, and satisfaction.
With the common thread of stress and
uncertainty underpinning many of the
factors voiced from the interviews, we
decided to look further into what this
means for the ERM professional and
the profession. Our exploration led us
in many directions but, notably, the
linkages between uncertainty, trauma,
stress, and change management were
interesting enough to share. From this,
we identified some classic management
tools and practices1 for both the ERM
professional and the organization for
dealing with stress, uncertainty, and the
changes that inevitably follow.
1 This is not an exhaustive list, but basic infor-
mation to help guide the ERM professional for
further reading.
Common Themes and Messages
What Was Voiced …
• Endorsement of ERM is based on the economic cycle. In hard
times, organizations are seeking more validation of why ERM is
important.
• ERM professionals feel diminished in terms of their relevancy and
begin to question or become uncertain about their significance to
the executive team.
• Even though risk is an accepted part of business conversation with
leaders, some still see it as hazard-based and not in terms of an
enterprise-wide management process.
• Negative risk erodes optimism. Buy-in from the leadership team helps
support the ERM professional in fulfilling his or her role.
• Relationships between people can become adversarial when there
is a perceived threat to position, experience, or intellect.
• Interpersonal conflict rises more often between members in pos-
itions of power and those seen as purveyors of bad or negative
news—aka the ERM professional.
• Managing risk is accepted, but an enterprise-wide effort is viewed
as additional work and the need for more resources when budgets
are lean and the culture defies active and intelligent decision-
making.
• External sources that cause fear or panic influence or affect how
ERM is viewed, accepted, or implemented.
• Transparency of risk information and engagement of internal/
external stakeholders increases confidence and trust and decreases
uncertainty.
• The health or wellness of an organization affects the behavioural
health and productivity of its employees.
What Needs to Be Explored Further ...
• How does one “shock” organizations to prove ERM value?
• How one does finds the right balance between board reporting and
executive interaction?
• ERM deals with uncertainty. The realities of human nature predis-
pose us to be affected individually by this uncertainty. Given the
role of the ERM professional, how does one balance his or her own
health and that of the organization?
• How does one tell when an organization is chronically fatigued
from constant change and demands for change?
• How should ERM professionals handle people in “power” or those
who do not have buy-in of ERM?
• How should ERM professionals package risk information that has a
negative connotation?
• How should leaders talk about uncertainty to their staff and exter-
nally to stakeholders?
• How could ERM professionals support their peers in the risk com-
munity?
• How can ERM professionals scan internal and external factors that
affect their wellness and the significance of their role? How can
they make organizational leaders aware of these factors and, by
extension, the organization’s working atmosphere and pursuit of
objectives?
• How can ERM professionals become more resilient when tasked
with helping their organizations be resilient?
Source: Interviews with nine ERM professionals were conducted by Sam Miller on various dates in mid-2015. Follow-up discussions were conducted with Karen
Thiessen in the same year.
6. Risk Watch Spring 2016 The Conference Board of Canada4
THE ERM PROFESSIONAL’S
PERSPECTIVE: THEMES
AND MESSAGES FROM THE
INTERVIEWS
Sam Miller, a trauma therapist,
conducted our interviews and helped to
extract our findings. He understands
the stressors that ERM professionals
may experience in their career and
the realities of why the ERM profile
can have its highs and lows. He
interviewed nine risk executives; some
of whom were employed at the time
and others who were in transition.
While backgrounds, perspectives, and
experiences varied, common themes
were evident. (See “Common Themes
and Messages.”)
The stressors that ERM professionals
currently experience are usually a
by-product of the organization’s greater
context. This context often leads to
the entire organization experiencing
hardships and “trauma,” with executives
having to make tough decisions in the
face of a great deal of uncertainty. This
uncertainty can lead to major changes
within the organization and with its
people. Thus, the realities of human
nature can either enrich or undermine
ERM.
In large part, endorsement of ERM
appears to be based on the economic
cycle. When times are good, ERM
is seen to add value or to adequately
function within the organization.
However, when times are tough,
organizations seek more validation of
why ERM is important—challenging
ERM professionals to prove its tangible
value. Furthermore, external sources
that cause fear or panic influence or
affect how ERM is viewed, accepted, or
implemented by all.
With the current rapid and extreme ebb
and flow of our business environment,
trying to achieve a sense of certainty
is very difficult. Who knows what the
price of oil will be in six months? Will
other sectors, like manufacturing, help
to carry the country’s fortunes with the
dip in the dollar? Is there even enough
manufacturing left in Canada to provide
for this economic diversity?
The unfortunate part of this frenetic
business environment is that those who
speak the language of uncertainty might
not be consulted for their perspective
on how to understand and weather the
storm. ERM is an entire profession built
around uncertainty, yet is typically one
of the first departments to experience
layoffs or budget clawbacks to make
short-term adjustments with a narrowed
view of the long game. For the ERM
professional, these tough times
can be spiritually eroding when an
organization ignores the early warnings
the professional provided and ends up
ultimately suffering a consequence. The
albatross for ERM professionals is that
risk still has such a negative connotation.
Our industry has the historical
misfortune of being “the merchant of no”
or “the purveyor of bad news.” For some
organizations, the annual risk report
and ad hoc assessments are seen as a
catalogue of doom and gloom.
Felix Kloman, risk management author
and guru, may have defined it best
by saying “(ERM) might not be seen
as a proper ‘profession,’ but more
so as … developing ideas on how to
direct organizations and the individuals
connected to them toward their goals.”2
This was confirmed with some of the
2 Felix Kloman, chain of e-mail correspondence,
January 2016.
interviewees who stated that their role
has become more encompassing and
diversified, creating more challenges.
These individuals are not strictly centred
on developing and implementing an
enterprise-wide risk management
process, but on collecting information,
turning it into data, and synthesizing
the data into relevance for their
organization’s leaders. The procedure
involves dipping into various disciplines
and extracting approaches, insights, and
worldviews, and adapting them to fit the
need. The ironic twist of this statement
is that in the right working environment
with supportive leaders, the ERM
professional can be valued tremendously.
In April 2015, the Strategic Risk Council
(SRC)3 discussed where the trend in the
ERM profession was heading. Some
members wondered: If not for their
board or regulatory bodies, would they
be employed? A deeper dive into the
discussions percolated into two ultimate
messages. Members could support each
other in how they demonstrate their
value-added. And, they could encourage
the broader view of the profession as a
synthesizer of critical information, idea
developer, and pursuer of goals. As well,
the SRC highlighted its peer-assisted
self-evaluation initiative, which offers
members a process in which to gain
such support.4
3 The Strategic Risk Council provides the only
national forum for senior risk management
professionals to network with true peers from
diverse industries who face similar challenges
in developing, implementing, and sustaining an
enterprise-wide risk management program.
4 The peer-assisted, self-evaluation initiative
extends and enhances the existing informal
mentoring function within the network. It
involves a single expert, drawn from a pool of
experienced ERM practitioners, supporting an
SRC colleague at a more general level in devel-
oping the ERM program, or when introducing a
new capability, or overcoming a barrier.
7. Risk Watch Spring 2016 The Conference Board of Canada 5
After years of research and public
attention, it is commonly acknowledged
that an employee’s behavioural health
and productivity is intrinsically linked
to an organization’s atmosphere of
work, culture, and leadership values.
Satisfaction of one’s employment is
also linked to good relationships and
open communication with co-workers
and superiors. Furthermore, how
an organization and its leaders
communicate and respond to unexpected
events or uncertainty contributes to how
its employees deal with stress, accept
change, and make intelligent decisions—
both personally and professionally.
It boils down to ERM professionals
needing to be a fundamental pillar of the
team and the organization helping them
cope with job stressors.
Some of these job stressors, which
are also identified by the American
Psychological Association (APA), were
clearly voiced during the interviews
and connected to the work of an ERM
professional. The stressors include:
• conflicting demands or unclear job/
performance expectations;
• lack of sufficient control over job-
related decisions;
• limited opportunities for
advancement and growth;
• lack of social support;
• low salaries;
• excessive workload;
• work that is not challenging or does
not engage the employee.5
Notwithstanding all these stressors and
factors, ERM professionals are, in large
part, an optimistic group. Because they
have hindsight experience, they tend to
5 American Psychological Association, Coping
With Stress at Work.
have great foresight on opportunity. It
is when they have this knowledge of
risk and perceive to be unheard that
they tend to overemphasize the negative
as part of a natural response. For some
ERM professionals, changing how they
perceive themselves and incorporating
positive language within their work may
offer them a better chance of connecting
with the various disciplines in their
organizations.
DIGGING DEEPER INTO
UNCERTAINTY AND TRAUMA
Trauma is about a loss of control and
one’s ability to understand the uncer-
tainty or unsuspected change they face.
From a personal and organizational
context, when an adverse event occurs,
there is a period of shock where one is
taken by surprise and disconnected from
their environment. There is denial of the
situation. A shock to an organization is a
blow to its normal business expectation,
either from extrinsic and/or intrinsic
force(s).
Sam Miller has spent much of his career
focusing on workplace wellness and
trauma. His work has connected him
with brave men and women in uniform.
As well, much of his work has been with
corporate entities to help provide on-site
advice to staff during a period of uncer-
tainty—like restructuring after an eco-
nomic downturn, high-risk termination,
or suicide of a beloved person.
For individuals and organizations trying
to find reason in the face of mounting
stress, trauma, and uncertainty, routine
is important. It is critical that manage-
ment help lead through uncertainty
to maintain operations with minimal
impact to the business itself. During a
Healthy Tips for Coping
With Stress
The 2012 survey by the APA found that
65 per cent of Americans mentioned
work as their main source of stress.
Only 37 per cent of those interviewed
felt they were coping well and able to
manage their stress. What is evident
is that we cannot avoid workplace
stress and must get better at identifying
its sources and ways of coping. Five
healthy tips are to:
1. Keep track of your stressors. By mon-
itoring, we can find patterns among our
stressors, as well as our response to
them.
2. Develop healthier responses. Choosing
healthy responses to replace the often
unhealthy coping techniques we use
(food, alcohol, and inappropriate behav-
iours) will lead to an overall sense of
wellness and control. Some of these
appropriate responses include healthy
eating, exercise, family time, and better
sleep. Learning relaxation techniques
are also a way to respond to, and pre-
vent, the effects of stress.
3. Establish boundaries. We often create
additional stress by not knowing when
to say “no,” and by not letting others
understand that our job duties and
responsibilities are our first priority.
4. Get support. Managing stress is under-
standing that we don’t always need to
deal with stressors on our own. Talk
to your supervisor or colleague. Allow
others to step in and help out.
5. Educate and encourage your organiza-
tion to develop learning sessions on
stress management, work-life bal-
ance, and managing through change.
(See “Practical Reading on Stress and
Coping.”)
Source: Modified by Sam Miller from the article
Coping With Stress at Work by the American
Psychological Association.
8. Risk Watch Spring 2016 The Conference Board of Canada6
structured shutdown, for example, front
line staff might not perform to a stan-
dard needed, thus affecting products and
services. Alternatively, organizations
might experience challenges that would
hinder a successful transition.
With uncertainty—for both the individ-
ual and organization—presenteeism,6
job abandonment, rumors or innuendo,
anxiety, and hostilities, build or are
6 Presenteeism is the act of attending work while
sick. A topic that, at times, is considered its
opposite—i.e., absenteeism—has historically
received extensive attention in the management
sciences. But presenteeism has only recently
found a place in the research literature.
understandably amplified. Normal posi-
tive dynamics—such as collaborations,
teamwork, and quality—suffer because
of sudden, catastrophic, unexpected, or
uncontrollable change. Notwithstanding
being blindsided, organizations and
ERM professionals can also feel the
effects of shock with signs of major
change or when something imminent is
about to happen.
CHANGE-FATIGUE-INDUCED
TRAUMA
Organizations that experience frequent
change due to their competitive environ-
ment or leadership-directed innovation
could experience “change fatigue.” This
is further compounded by an external
shock to the organization. These forces,
together, can burn out staff and give
the perception that leadership-driven
change is “unfocused, uninspired, and
unsuccessful.”7
James Kerr, of Blum Shapiro Consulting,
wrote a wonderful article for Inc.
Magazine comparing “change fatigue”
to the “fog of war.” He describes them
as “ambiguity, emotional overload, and
utter confusion that is experienced by
soldiers and their military leaders when
engaged in constant battle.”8 Kerr goes
on to provide his five tips to soften the
effects of change fatigue:9
1. “Take the time to vet.” Make
sure change is necessary, that a
desired outcome is achievable and
7 Perlman and Kotter, “Change Fatigue.”
8 Kerr, “Beware of Change Fatigue.”
9 Note: “Tip” titles by James Kerr; the descrip-
tions are by Christine Maligec.
acknowledge the toll of change on
the organization.
2. “Take the time to explain the end-
game.” Help everyone understand the
desired outcome and the reasons for
the change.
3. “Take the time to draft a formal pro-
ject plan.” Define the work steps
and schedule as a communication to
achieving success.
4. “Give your ‘usual suspects’ a break.”
Avoid burning out subject matter
experts with the responsibility to
implement projects. Instead, work
on developing this skill in others and
use the “usual suspects” as advisors.
5. “Draw the battle lines.” Focus on bat-
tling your competitors and not each
other within your organization.10
Whether change is good or bad, every-
one can get on board and transition into
the next chapter. Our capacity to absorb
and manage change varies according to
the importance and time each person is
willing to give to it. If the change is of
your own volition, a surprise, or your
responsibility to plan, it is important to
recognize the phases of change. William
Bridges’ Transition Model is a change
management tool that helps us to under-
stand the process humans go through
when dealing with change. It guides
people from the onset to the conclusion
of change while mitigating the long-
term impact. (See “Three Phases of the
Human Process Change.”)
10 Kerr, “Beware of Change Fatigue.”
Informational and Practical
Reading on Stress and Coping
Why Zebras Don’t Get Ulcers: An
Updated Guide to Stress, Stress-Related
Diseases and Coping by Robert Sapolsky,
PhD. New York: W.H. Freeman, 1994.
A Mindfulness-Based Stress Reduction
Workbook by Bob Stahl, E. Kabat-Zinn,
and S. Santorelli. Oakland, CA: New
Harbinger Publications, 2010.
Undoing Perpetual Stress: The Missing
Connection Between Depression, Anxiety
and 21st Century Illness by Richard
O’Connor, PhD., 2006.
Manage Your Time to Reduce Your
Stress: A Handbook for the Overworked,
Overscheduled, and Overwhelmed by
Rita Emmett. London, U.K.: Walker
Books, 2008.
Don’t Sweat the Small Stuff—And It’s
All Small Stuff by Richard Carlson. New
York: Hyperion, 1997.
Stress-Free for Good: 10 Scientifically
Proven Life Skills for Health and
Happiness by Fred Luskin and Kenneth
R. Pelletier. San Francisco: Harper, 2006.
Source: Suggestions by Sam Miller.
9. Risk Watch Spring 2016 The Conference Board of Canada 7
WELL-BEING, WELLNESS, AND
THE MINDFUL ORGANIZATION
There is certainly a connection between
the well-being11 of employees and
that of the organization. Some of the
indicators and patent costs of stress
to an organization include presentee-
ism, absenteeism, disengagement, early
retirement, and resignation.
However, an indicator typically over-
looked is benefit costs. Work-related
stress could affect an employee’s health,
predominantly when coupled with
chronic conditions such as mental health,
migraines, heart disease, and metabolic
disease. Eventually the impact of stress
can manifest itself into an emergency
situation that requires reflection and
instilling a positive change.
One of the best leadership examples
of this situation is the story Arianna
Huffington recites in her book Thrive.
She tells the story of waking on the floor
in her office with a “broken cheekbone
and nasty gash over her eye; the result of
a fall brought on by exhaustion and lack
of sleep.”12 Huffington realized these
were symptoms of a bigger problem—
that success was literally killing her.
Money and power were the traditional
measures of success that guided
Huffington to being one of the most
successful women in media. In media
interviews and speaking engagements,
Huffington “… likened her drive for
11 Well-being and wellness are sometimes used
interchangeably. For this article, we see well-
being as one’s mental state and wellness
relating to one’s physical aspects of health and
lifestyle. Sleep, exercise, resiliency, and mind-
fulness play significantly in achieving a sense
of well-being and wellness.
12 Huffington, Thrive.
money and power to two legs of a three-
legged stool. They may hold us up tem-
porarily, but sooner or later, we’re going
to topple over. We need a third leg—a
third metric for defining success—to
truly thrive. That third metric, she writes
in Thrive, includes our well-being, our
ability to draw on our intuition and inner
wisdom, our sense of wonder, and our
capacity for compassion and giving.”13
It was not until she added “mindfulness”
that she found her true metrics for suc-
cess and happiness.14
MINDFULNESS 101
What is mindfulness? Mindfulness is a
way of being—a quieting of the mind
where it can relax, restore, and repair.
It requires people to consciously self-
regulate their mind and body for balance
so that they can make kind, healthy, and
long-term decisions about how they live.
Another way to look at it is “paying
attention on purpose to whatever is hap-
pening in the present moment (internally
and externally) from a stance of curios-
ity and non-judgment.”15
Modern research into mindfulness is
beginning to show us how using mindful
practices could create positive physical
change in our brains. The amygdala is
the emotional response centre of our
brain and the part responsible for the
survival of our species—especially the
fight-or-flight response. It is because of
this ingrained survival instinct our brain
perceives “negative stuff” as having
13 Ibid.
14 Ibid.
15 Martin, “The 3 Types of Mindfulness.”
importance and gives it an immediacy
for response.16
The amygdala receives signals from
sensory systems and other higher order
parts of the brain and connects them
to external information, previous asso-
ciations, or conditioned stimuli.17 In
a world filled with sensory overload,
stress hormones like adrenaline and
16 LeDoux, “The Amygdala in 5 Minutes.”
17 Ibid.
Three Phases of the Human
Process Change
1. Ending, Losing, Letting Go. It is during
this period of uncertainty that, without
additional information or support, we can
experience the fear, confusion, sadness,
and numbness that come with change.
The first steps in the change process are
to have an open conversation on change,
empathize that change can be difficult,
and acknowledge that help with the
change is available.
2. The Neutral Zone. In this phase,
people acknowledge change but still
might not understand the journey—
or they are impatient for the outcome.
Communication and comprehensible
direction is important during this phase
to maintain clarity and to work toward
a common goal. Ongoing feedback and
celebrating small successes will help to
keep a positive light on change and pro-
vide motivation.
3. The New Beginning. With the path
cleared of the past and the journey con-
quered, we can see the outcome of all of
our work. This might open the door to
doing things differently, having a positive
effect on the organization, and growing
as a mindful professional.
Source: Mind Tools, Bridges’ Transition Model,
Guiding People Though Change. Note: The titles are
by Mind Tools; the descriptions are by Christine
Maligec.
10. Risk Watch Spring 2016 The Conference Board of Canada8
cortisol can overtake one’s well-being.
This modern medical phenomenon has
been named the “amygdala hijack” by
Daniel Goleman in his book, Emotional
Intelligence.18
It is this excessive or overproduction
of cortisol that is linked to increased
blood sugars and shuts down or alters
non-essential services in the fight-or-
flight response. These non-essential
services include our immune, digestive,
and reproductive systems, and growth
process.19 As well, the constant stimu-
lation of adrenaline can cause chronic
fatigue or tiredness, pain, fuzzy thinking,
weight gain, depression, cravings, and
mood swings.20
Mike Christian, an assistant professor
of organizational behaviour at the
University of North Carolina’s Kenan-
Flagler Business School, researches the
mind-body connection at work. One
of his research projects delved into
mindfulness and mental energy. He
concluded that:
• “…being in the moment can help
mitigate the effects of unfairness on
our fight-or-flight response.”
• “Our ability to self-regulate is influ-
enced by various external and inter-
nal factors. The way leaders act, and
whether or not people perceive these
actions as fair, can affect people’s
reserve of energy.”
• “People who are mindful … are better
able to control their thoughts and are
less quick to react.”
• “…just perceiving that you have con-
trol over your job gives you more
18 Goleman, Emotional Intelligence.
19 Mayo Clinic Staff, Chronic Stress.
20 Pick, “Adrenal Health in Women.”
energy—that this experience acti-
vates what we call your behavioural
approach system, which controls
goal-oriented behaviour.”
• “…on days when people feel like
their jobs are meaningful and
important—when they feel like the
work they’re doing affects others in a
positive way—people invest more in
themselves.”21
When we combine the part of our brain
that protected us from fire and preda-
tory animals with our modern context
for harm (or risk), it is easy to see how
someone can be stuck in a pattern of
negative thinking. Taken a step further,
one can also see why risk professionals
may enter into conflict with others who
might not have the same risk context,
thinking, experiences, or readings of les-
sons learned.
TYPES OF MINDFULNESS AND
POSITIVE OUTCOMES
Different forms of mindfulness work for
different people. Most mindfulness is
focused on various styles and techniques
of mindfulness meditation. However,
other forms—which can and are prac-
ticed together—include mindfulness
exercises like yoga and breathing exer-
cises, self-awareness/help books, and
mindfulness music.
Mindfulness meditation is not just a
fad. Many consider meditation an art
form dating from approximately 5,000
to 3,500 BC in the Hindu culture, but it
is also noted in other religious writings
and teachings.22 However, Jon Kabat-
Zinn—professor of medicine emeritus;
a student of Buddhist teachings; and
21 Geller, “Mike Christian on Mindfulness and
Mental Energy.”
22 Puff, “An Overview of Meditation.”
creator of the Stress Reduction Clinic
and the Center for Mindfulness in
Medicine, Health Care, and Society at
the University of Massachusetts Medical
School—is credited with integrating
these teachings into science.
Many organizations are incorporat-
ing mindfulness as a secret ingredient
to their success, as well as providing
time for yoga or mediation practice.
Companies are also embedding mindful-
ness into corporate wellness programs
and decision-making. This ensures a
thoughtful pause to focus and reflect
before taking action that may adversely
influence the business, its customers, or
its people.
Take, for example, how mindfulness is
used in public service. Teaching is a
well-established yet very stressful pro-
fession. Dealing with challenging situa-
tions with students and parents can “add
to a teacher’s daily stress level that, over
time, can lead to burnout.”23 This has
led to research on introducing mindful-
ness into the education system. A recent
study on “mindfulness-based interven-
tions show[s] promise in reducing stress
and increasing well-being by cultivating
mindfulness and self-compassion.”24
The use of mindfulness in a teaching
environment with an embedded, mind-
fulness-based, kindness curriculum has
also had a positive outcome on “grades
in domains of learning, health, and
social-emotional development.”25
23 Zakrzewski, “Can Mindfulness Make Us Better
Teachers?”
24 Beshai and others, “Non-Randomised
Feasibility Trial.”
25 Flook and others, “Promoting Prosocial
Behavior.”
11. Risk Watch Spring 2016 The Conference Board of Canada 9
Michael Carroll, a mindful leadership
consultant,26 combines his 25 years of
business experience with the wisdom
of Buddhism. His approach to mind-
ful leadership is about creating a saner
world, leading to collective awareness,
inspiration, and decency. Carroll wrote
The Mindful Leader, in which he shares
10 talents of a mindful leader and how
to cultivate them through mindfulness
meditation. (See “Ten Talents of a
Mindful Leader.”)
Risk professionals are leaders not only
in evolving their profession but also in
leading organizations through an enter-
prise-wide risk management effort. If
ERM professionals know where they’re
going and how to get there, but not
where they are and what they have now,
they are lost.
Interesting research by Leonard L.
Riskin, in 2002, shows that profession-
als whose work tends to focus on exter-
nal factors—such as rules, standards,
and guidance—or who place them in
constant adversarial or challenging
mindsets, found that mindfulness helped
manage stress and gain more satisfaction
from work.27
In the YouTube video of Carroll speak-
ing with Google, the leadership con-
sultant describes some key aspects of
mindful leadership as it applies to organ-
izations. Carroll’s main messages are:
1. We cannot define success simply by
achieving objectives. Most leaders
want to get from point A to point B
quickly, efficiently, and profitably.
However, we must connect our world
26 Carroll, The Mindful Leader: Ten Principles.
27 Riskin, “The Contemplative Lawyer.”
with the organization to inspire, be
aware, and develop the collective
practice of being present and sane
without tripping over ourselves.
2. We need to rest in the moment to
discover our talents and lead. We
live in a culture of “never enough.”
We quickly apply our efforts in try-
ing to achieve things or to go some-
where. We believe it is about speed,
being smarter, or outstrategizing. Yet,
we are so blinded in our effort to
get somewhere fast that we overlook
who we are and where we are.
3. We take our minds—our greatest
tool—for granted. Leadership train-
ing is about going to conferences,
weaving strategies together, access-
ing more sophisticated tools, and
developing different views. Mindful
leadership is about training your
mind in a specific way. It comes
back to self-regulating, resting, and
living in the present.28
When mindfulness has been embed-
ded into professions or organizations,
most studies seemed to have positive
outcomes. Google, for instance, has an
emotional intelligence program called
“Search Inside Yourself.” It trains your
attention, develops self-knowledge and
self-mastery and creates useful mental
habits.29 However, researchers have
only scratched the surface on looking
at increased organizational perform-
ance over time. The good news is that
mindfulness is now mainstream, and
organizations can makes changes to their
wellness programs to include certain
styles and techniques of mindfulness.
INDIVIDUAL RESILIENCY:
CHARACTERISTICS NEEDED FOR
THE ERM PROFESSIONAL
Rosabeth Moss Kanter in her arti-
cle, “Surprises Are the New Normal:
Resilience Is the New Skill,”30 points
out that great leaders and successful
companies understand that you cannot
avoid troubles or potential pitfalls. Even
successful companies get blindsided by
market variables or other companies and
are forced to play catch-up. The real
skill is in being resilient—climbing out
of a hole, bouncing back, and thriving.
ERM professionals must possess certain
qualities to survive and thrive within
their organizations. Interestingly enough,
ERM is about helping organizations
deal with those risk factors. Essentially,
28 Carroll, “‘The Mindful Leader’|Talks at Google.”
29 Essig, “Google Teaches Employees.”
30 Moss Kanter,”Surprises Are the New Normal.”
Ten Talents of a Mindful
Leader
1. Simplicity: getting to the cushion
and practicing mindfulness medita-
tion
2. Poise: gathering the mind
3. Respect: touching our hearts
4. Courage: letting go of thoughts
5. Confidence: opening to what is
arising
6. Enthusiasm: leaping into uncertainty
7. Patience: biding in the present
moment
8. Awareness: glimpsing open space
9. Skillfulness: extending out off the
cushion
10.Humility: dissolving the fixed sense
of self and others.
Sources: As posted on Habits for Wellbeing,
www.habitsforwellbeing.com/what-are-the-
top-10-talents-of-a-mindful-leader/, and taken
from Carroll, The Mindful Leader: Awakening
Your Natural Management Skills Through
Mindfulness Meditation.
12. Risk Watch Spring 2016 The Conference Board of Canada10
we are talking about the resiliency of
employees tasked with helping their
organizations be resilient.
Resilient individuals need to be flexible
and confident. In order to learn from
mistakes, one needs accountability, col-
laboration, and initiative—the three
components of confidence. Resilience
draws on strength of character from a
core set of values and beliefs that motiv-
ate people to overcome setbacks and
resume their quest for success.
Much has been researched and written
about the characteristics of resilient
people. Dean Becker, President and
CEO of Adaptiv Learning Systems,31
states that the one factor most important
in determining who succeeds and who
fails is a person’s level of resilience.
This is more important than education,
experience, and training. Diane Coutu
looks at three characteristics of resilient
31 Adaptiv Learning Systems are specialists in
resilience training. For more information, visit
www.adaptivlearning.com.
individuals: a staunch acceptance of
reality, a deep belief often strengthened
by strongly held values, and the ability
to improvise.32
In the business world, resilient people
are realistic and down-to-earth in their
understanding of those parts of reality
that matter for survival. A realistic—
almost pessimistic—sense of reality is
important. When we stare down real-
ity, we prepare ourselves to act in ways
that allow us to cope with and survive
through all sorts of hardships.
Understanding your reality is closely
tied to the second characteristic of resili-
ence, which is making meaning of ter-
rible situations. This is the way resilient
people build bridges from their current-
day hardships to a fuller, richer, and bet-
ter-constructed future. It is these bridges
that make the difficult times manageable
and less overwhelming. Values that we
use to buttress our beliefs are character-
istic of resilient companies as well. The
value systems of resilient companies
change very little over the years and are
used by the companies as scaffolding in
times of trouble. The third characteristic
of improvisation is the ability to make
do with whatever is available to role
with the punches. Companies that sur-
vive view improvisation as a core skill.
Dr. Smita Malhotra talks about five
characteristics of resilient people.
These people:
• practice mindfulness;
• don’t compare themselves to others;
• understand that after every
big setback is an even bigger
transformation;
32 Coutu, “How Resilience Works.”
• find humour in everything;
• do not try to control their lives.33
At the end of the day, all these character-
istics help ERM professionals cope with
many of the concerns that were voiced
during our interviews and follow-up
discussions. For more reading on resili-
ence, see “Informational and Practical
Readings on Resilience.”
ORGANIZATIONAL RESILIENCY:
HALLMARKS TO ACHIEVE
Karl Weick and Kathleen Sutcliffe have
written several editions of their primary
book, Managing the Unexpected. In
them, they discuss the five hallmarks
of high-reliability organizations (HRO).
“These hallmarks make up what [they]
have termed ‘mindful organizing.’”34
Easily, one can see how these hallmarks
of ‘mindful organizing’ are relatable
to the ERM profession and the ERM
professional.
1. “Preoccupation with failure.” It is
time to make ERM about more than
just filling out a risk register every
year. HROs use a combination of
environmental scanning, data ana-
lytics, surveys, and other tools to be
able to look at the signals that intro-
duce uncertainty, which could have
an adverse outcome.
2. “Reluctance to simplify.” With sim-
plicity, ERM professionals miss
the big picture. “Knowing that the
work they face is complex, unstable,
unknowable, and unpredictable, they
position themselves to see as much
33 Malhotra, “The 5 Characteristics of Incredibly
Resilient People.”
34 Weick and Sutcliffe, Managing the Unexpected:
Sustained Performance in a Complex World.
Informational and Practical
Readings on Resilience
Resilience: Why Things Bounce Back by
Andrew Zolli and Ann Marie Healy. New
York, NY: Simon & Schuster, 2013.
Resilience: Hard-Won Wisdom for Living
a Better Life by Eric Greitens. Boston:
Houghton Mifflin Harcourt, 2015.
The Survivor Personality by Al Siebert,
PhD. New York, NY: Perigee Trade, 1996.
The Big Little Book of Resilience by
Matthew Johnstone. Tuggerah, New
South Wales: Pan Macmillan Australia,
2015.
Source: Suggestions by Sam Miller.
13. Risk Watch Spring 2016 The Conference Board of Canada 11
as possible. They encourage bound-
ary spanners who have the diverse
experience, skepticism toward
received wisdom, and negotiating
tactics to reconcile differences of
opinion without destroying the nuan-
ces that diverse people detect.”35
3. “Sensitivity to operations.” “The
big picture in HROs is just as
operational as it is strategic.”36
Understanding the data, context,
and objectives of the organization
in order to understand when ideal
conditions are changing is import-
ant. Weick and Sutcliffe provide an
interesting insight through story for
this hallmark relatable to the ERM
professional. For their own success,
ERM practitioners should be mindful
that other business units or leaders
might have a higher priority, thus
putting the role of ERM in conflict
with short-term success.
4. “Commitment to resilience.” HROs
learn from failure (their own and
others), challenge perception along
with assumption, and can anticipate
change as part of their commitment
to resilience. “The essence of resili-
ence is therefore the intrinsic ability
of an organization (system) to main-
tain or regain a dynamically stable
state, which allows it to continue
operations after a major mishap and/
or in the presence of a continuous
stress.”37
5. “Deference to expertise.” HROs
understand that not all deci-
sions need to be made at the top.
Delegated authority is driven “down
and around” to solve problems at
35 Ibid.
36 Weick and Sutcliffe, Managing the Unexpected:
Sustained Performance in a Complex World,
3rd ed.
37 Ibid.
the source. Diversity in experience
is recognized as strength on the
bench, provides support to adapt
quicker to a changing environment
or crisis, and avoids being trapped in
groupthink.38
RESILIENCE WITHIN THE
ORGANIZATION AND FOR THE
ERM PROFESSIONAL
Humans are creatures of habit and have
a great deal of resiliency—just like most
organizations. At the end of the day,
there is stress brought on by a number of
factors that we may or may not be able
to control. What we can control is how
we recognize and react to the stress.
To lessen the impact, ongoing and open
communication is important. Not just for
front line staff, but for leadership. Being
able to communicate in a transparent
and reciprocal manner not only helps
everyone cope, but creates hope.
Where one can start planning, one can
start controlling. Even when faced
with uncertainty and the prospect of a
negative outcome, it is possible to act
on previously discussed scenarios or
respond using the best information avail-
able. Reframing ERM into a different
language—such as change management,
organizational wellness, or organiza-
tional resiliency—may take away from
the negative connotation of risk.
Knowing that one is not alone in his or
her frustrations should also be a source
of comfort. ERM colleagues, who work
at different organizations, are a great
resource to rethinking a situation or
38 Ibid.
problem and taking a different approach
to risk. Collaborating on new tools or
work products helps boost individual
confidence and heightens the image of
the ERM profession, particularly when
needing to substantiate or benchmark
success—or even failure.
We hope that, at a minimum, this
article created an “ah ha! reflection” or
brought about a deeper understanding
of the challenges and stressors facing
ERM professionals in the continuously
changing risk landscape.
Why not take the MindWell Mindfulness
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More than 2,000 people have completed
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14. Risk Watch Spring 2016 The Conference Board of Canada12
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sustainability issues of an enterprise
risk management (ERM) program. She
project-leads Risk Watch, a tri-annual
journal that presents original articles by
leading global thinkers and practition-
ers on risk management. Her research is
based primarily on what is happening in
the world of ERM and the ERM profes-
sion. Prior to joining The Conference
Board of Canada, Karen’s career crossed
various disciplines and industry sectors.
She served in various management func-
tions—including operations, risk man-
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medical and rehabilitation health care,
and health and safety.
Karen Schoening-Thiessen
Senior Research Associate
Governance, Compliance and Risk
The Conference Board of Canada
Christine Maligec is currently the Risk
Officer at Alberta Blue Cross. With
over 12 years of risk management
experience, Christine is able to bridge
her understanding across multiple
industries and disciplines to look at
risk from a holistic perspective. In
2014, Christine started an informal,
grassroots ERM networking group
in Edmonton. In addition, she
supports the Strategic Risk Council
by co-chairing its mentoring and
coaching initiative as well as sitting on
an advisory and executive committee.
As an active Risk and Insurance
Management Society (RIMS) member,
Christine has been involved with
her local RIMS chapter for almost a
decade and is presently the social and
events chair.
Christine Maligec
Risk Officer
Alberta Blue Cross
15. Risk Watch Spring 2016 The Conference Board of Canada 13
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